Nifty to consolidate at 3200-3600: India Infoline

MUMBAI: India Infoline feels that the recent breakout of Nifty was a false alarm and the markets will pause and consolidate for the time-being.

���Nifty rallied strongly from 2540 level registered in early March to a high of 3511 levels during the last week, an increase of 38.2 per cent. The rally initially started as value buying which then triggered short covering leading to a steep rise in the bourses. The upturn was led by beaten down sectors like real-estate, metals and banking. Participation was also seen from mid-cap and small-cap indices, which rose 30 per cent and 36 per cent respectively," India Infoline note said.

"During the previous week, Nifty did manage to crossover its 200 DMA of 3430 levels touching a high of 3518. However, the market was unable to sustain above this level for a longer duration proving the breakout to be a ���false alarm.��� We believe markets are likely to take a pause at the current juncture and consolidate within the range of 3200 and 3600 for the time being,��� the India Infoline note added.